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Illuminera released a blockbuster industry report Future of the Brand-name Drugs after the Surging Tide of VBP and Strategic Enlightenment for Manufacturers

From the initiation of “4+7” pilot areas in 2018 to the national implementation of the fifth centralized drug procurement in 2021, rules of the national centralized procurement, have been gradually improved and normalized, resulting in a major reshuffle of the market competition situation. Have pharmaceutical companies really got their good wish in this “price-for-volume” game over the past two years? For brand-name drugs, whether should they squarely face the fierce competition to get listed, or stick to the price and quit the game? With different choices, what will be the way to get upper hand and what lessons could they learn from?


Illuminera has recently released a blockbuster industry report Future of the Brand-name Drugs after the Surging Tide of VBP (volume-based procurement) and Strategic Enlightenment for Manufacturers (referred to as "the report" or "this report" for short), to interpret the development course of VBP, influence on multinational pharmaceutical companies, and illuminations for brand-name products in details.


Get stuck or seek for change?

- How brand-name products could break through in “price-for-volume” game?


Most brand-name drug enterprises started to join the VBP game, though reluctant, after looking on the “fight” for a long time, and they are learning to adapt to the new rules, while it is generally predicted that unbid brand-name drugs will go through a cliff-like sales decline. But is this really the case? For drugs that have won the bid, could the good wish of “price-for-volume” be realized as expected?


The reportaccomplished by Illuminera’s healthcare consulting team, has deeply probed into VBP influence on brand-name drug enterprises for the first time, through omni-channel and multi-dimensional analysis, from product portfolio, channel sales volume, time span, regional performance, company strategy, and etc. It uncovers the facts and truth behind “price-for-volume”, which is of milestone significance.


1. Chanel Analysis

In addition to sales data from large hospitals, the report has innovatively incorporated terminal sales data from retail and medical institutions at all levels for in-depth analysis.


2. Time Span

Sales volume covered by this report ranges from the pre-implementation stage of VBP (April 2018 to March 2019) to the second implementation of nationwide VBP (April 2020 to September 2020), reflecting the medium to long-term product sales over a 2.5-year time span.


3. Regional Performance

The report not only covers overall changes in national sales volume, but also supports a horizontal analysis of product sales performance in the bid-winning and non-winning regions.


Price vs. Market potential

- What should brand-name drug makers pursue for sustainable development?


Through in-depth analysis of a large number of sales data, the report has screened out unbid product portfolios which were both greatly and slightly affected by VBP, identified the key attributors affecting the margin potential of unbid products in each region, and provided strategic inspiration for the sustainable development of unbid products.


5 key points in this report

 Development course of VBP

 Analysis of products affected by VBP

 Could VBP bid-winning could realize price-for-volume

 Future for unbid VBP products

 Enlightenments for brand-name drug enterprises


Application scenarios involved by this report

● To support decision-making about whether a product to be listed at a lower price

To support for predicting product sales changes after VBP

● To set references for product strategies and investments after VBP in different regions


Illuminera has been deeply engaged in the medical field for more than ten years, focusing on providing integrated marketing services for customers in the pharmaceutical industry. With the rich experience in prescription drugs, medical devices, over-the-counter drugs (OTC), vaccines, hospitals, digital marketing and other fields, it is a strategic partner of many world-famous pharmaceutical and medical brands.


Important Notes:

1.The products covered in this report are mainly the brand-name drugs affected by first implementation of VBP. The data period is 2.5 years, including 45% of brand-name drugs affected by first implementation of VBP

2.The report data source: Index data from sales terminals, including tertiary, secondary and primary medical institutions and retail channels

3.The report reflects only the overall analysis, and uses the combined average data to represent the overall trend. Names of specific products and other related information havn’t been disclosed.


*Acknowledgements go to Zora Yu, Evan Zhou, Lynn Zheng, Vera Xu, Karen Duan and Thea Cui, for their contributions to this report.



For more details of the report and quotation, please call 86 182 1762 4802 or email to marketing@illuminera.com.